The effects of the government shutdown will be different for everyone in New Hampshire – and the country – depending on who they are and what their plans are.
Let’s take a look as some of the biggest impacts:
Impact on NH’s federal employees
There are as many as 19,000 federal employees living in New Hampshire who work in approximately 9,000 federal civilian and military jobs here or in other states – or remotely, according to New Hampshire Fiscal Policy Institute.
None of them will be paid during the shutdown. Some will be furloughed. Others who are considered essential workers, like Transportation Security Administration [TSA], air traffic controllers, military personnel, and ICE employees, will work, but won’t get paid. A 2019 federal law requires that they get back pay once the shutdown ends.
Health insurance for federal employees will still be in effect during the shutdown, but plan changes and adjustments will have to wait until it’s over.
Federal workers who are furloughed during the shutdown can apply for Unemployment Compensation for Federal Employees through the state during the shutdown.
Federal contractor jobs
People who work as a contractor for the federal government – and are thereby self-employed – won’t get back pay once the shutdown is over. Contractors also have no guarantee that their job will still be there when government starts up again.
Loans for NH workers who live in Maine
Laid-off federal workers, as well as those required to work without pay, whose jobs are in New Hampshire, but live in Maine, are eligible to apply for Maine’s Government Shutdown Loan Guarantee Program. The program provides no-interest loans of up to $6,000 to federal or state employees who are Maine residents and affected by a government shutdown. The program just became law this year, and is administered by the Finance Authority of Maine.
Loans are from participating banks and credit unions. Borrowers must be either furloughed or required to work without pay during a shutdown, and must provide proof of employment, income, and residence, as well as a sworn affidavit confirming eligibility and unemployment compensation details. Creditworthiness is not a factor.
There is a grace period that begins when the loan is disbursed and ends either 90 days after it’s disbursed or the end of the shutdown, whichever is later. The loan must be repaid 180 days after the grace period ends in 3-6 equal installments to remain interest-free.
Federal employee job security
Office of Management and Budget Director Russ Vought issued a memo last week that called for federal departments to undertake a reduction in force of employees in programs for which funding expires during the shutdown.
President Donald Trump Tuesday reiterated that may happen, saying the shutdown is an opportunity to “get rid” of employees and programs “that we don’t want.” The Trump administration has exempted some federal officials from the shutdown furlough, allowing them to work with pay, so that they can implement the layoff plans.
Federal law, however, does not allow the executive branch to fire federal civilian employees because funding has lapsed. On top of it, federal law has strict constraints about what can be done with personnel during a government shutdown. Law makes both the firings, and paying federal workers to carry them out, illegal.
Unions including the American Federation of Government Employees, which represents more than 800,000 federal employees, and the American Federation of State, County and Municipal Employees have filed a lawsuit charging that both the firings, and allowing some employees to work with pay to carry them out during the shutdown, are illegal.
Social Security, VA, Medicare, Medicaid, SNAP, WIC
People who receive regular government benefits – Social Security, VA, Medicare and Medicaid checks – will still get them.
Social Security, both retirement benefits and disability income, is paid out of a trust fund that’s not part of the federal budget appropriation, and is a mandatory payment. Some services may not be available, or be delayed. The Social Security Administration says that it will continue to issue cards, but the process may take longer. The SSA also will still hold hearings and deciding cases as scheduled, process applications for benefits and other similar functions, though it may also take longer. It may be hard to get customer service on the phone, or an email response.
VA payments, including compensation, pensions, education, and housing benefits will continue to be paid, since the funding for all Veterans Affairs programs is provided a year in advance. VA medical centers and clinics will also remain open. Some services, though, won’t be available, including VA regional offices, hotlines including those for the GI Bill and National Cemetery Applicant Assistance; career counseling and services will also not be available.
Medicare and Medicaid patients can still get care under the programs, and their providers can still submit claims and be reimbursed.
WIC [Women, Infants and Children program] benefits will continue, including appointments. Households can continue to enroll, as long as money that’s already been appropriated holds out.
SNAP [Supplemental Nutrition Assistance Program] recipients already in the program should still get their monthly benefit, at least for 30 days, and stores will continue to accept SNAP benefits. This may change if the shutdown goes into November. Beginning this month, approval of applications and disbursements of new benefits may be slow or not happen.
Home heating
LIHEAP [Low Income Home Energy Assistance Program], which provides grants to states to help residents offset home energy costs won’t be affected until the end of 2025. The money for this year has already been allocated to states.
Longer-term issues are a bigger problem. The Trump administration wants to do away with the 45-year-old program, saying that energy costs are going down and it’s not needed, though this isn’t true. Energy costs are actually expected to rise in 2026. In April, the Department of Health and Human Services, which administers, the program, fired its entire staff. A bipartisan bill, the LIHEAP Staffing Support Act, was introduced in the House to require a minimum staffing threshold but it hasn’t been passed in Congress. New Hampshire’s two U.S. Representatives, Chris Pappas and Maggie Goodlander, are co-sponsors.
Both the Senate and House budgets call for funding LIHEAP in FY 2026 – the Senate at a little more than it was funded for this year, and the House at the same level. Neither, though, addresses the lack of federal staff to administer the program.
Federally qualified health clinics
Some federally qualified health clinics won’t have day-to-day operations, depending on their funding situations.
Some of New Hampshire’s are already closing because of Medicaid cuts, including Ammonoosuc Community Health Services, in Franconia, and Mascoma Community Health Center, in Canaan, announced this summer they would close because of the cuts.
U.S. Postal Service
The USPS is self-funded and not part of the federal budget that’s stalled in Congress, which means that mail delivery will continue as usual.
Head Start
Head Start preschool child development programs, funded by grants from the Department of Health and Human Services grants as well as the state, serve about 1,300 families in New Hampshire. The federal grants are being funded on a quarterly basis, a change from the previous monthly payments, so the impact of the shutdown may not be seen unless it lasts for more than a month.
Travel and vacations
Air travel: Expect longer lines at the airport, as TSA agents are working without pay, and during previous shutdowns this led to decreased staffing as a higher number than usual called in sick, or left for a paying job. Air traffic controllers, too, are working without pay, which also caused an increase in people out sick as the 34-day shutdown in 2019 dragged on.
Passports: Delays in processing passports are expected.
White Mountains, Acadia: The White Mountains National Forest and Maine’s Acadia National Park (the only national park in New England), remain open, but with limited visitor services, including trash pickup, restroom cleaning and trail maintenance.
Business: SBA loans, flood insurance, EPA permitting
SBA: New loan approvals from the Small Business Administration, as well as applications for SBA programs are halted. Payments and servicing for existing loans will continue.
Flood insurance policies: New flood insurance policies won’t be issued by the Federal Emergency Management Agency, which means if one is required for a mortgage you’ve applied for, it’ll delay that process.
EPA permits: Most Environmental Protection Agency functions and permitting will halt, meaning that projects that are looking for permits in order to go forward will be delayed. Project funding to the state Department of Environmental Services from the EPA will also be delayed. The delays may affect state projects as well as municipal ones.
Ripple effects
A prolonged shutdown will affect more than just the direct person or business.
Thousands of furloughed or unpaid workers means an economic hit for businesses like grocery stores, restaurants, theaters, and more.
Slowdowns or stoppages for development or business projects also will be a hit to the economy.
People without access to health care or resources for themselves or their family mean higher health care and other costs for everyone.